Germany's MAN to build Volkswagen branded trucks, buses in South Africa
Associated Press
10/26/09 6:45 AM EDT
FRANKFURT — German truck and bus maker MAN SE will build Volkswagen branded trucks and buses in South Africa, starting in November, to tap into the wider sub-Saharan market.
MAN, based in Munich, already has some operations in South Africa, but will now also build and market VW brands. The move comes after it recently bought the Latin American truck and bus operations of Volkswagen.
Volkswagen, based in Wolfsburg, holds about 30 percent of MAN, one of Europe's largest builders of heavy vehicles.
MAN said late Sunday it would build the Volkswagen branded Constellation truck series and the Volksbus series at its Pinetown plant near Durban, on the southeast coast.
With demand expected to rise and inventories falling, MAN said the Pinetown assembly plant has the potential to double its production to about 3,200 units a year thanks to the introduction of the Constellation trucks and Volksbus chassis.
"MAN Latin America is known for its expertise in emerging markets, not only in product development but also in tailor-made sales and after sales," Roberto Cortes, the chief executive of MAN Latin America said in the statement.
"The addition of MAN Commercial Vehicles' experience in South Africa and the entire sub-Saharan region will offer us synergies to conquer more markets and customers."
Shares of MAN were up more than half a percent at euro59.16 ($90) in Frankfurt morning trade.
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